Question

National competitive advantage theory states that a nation’s competitiveness in an industry depends on the capacity of the industry to innovative and upgrade.

a. True

b. False

Both early theories of absolute and comparative advantage held that efficiency gains would be the result of specialization in the production of a particular good.

a. True

b. False

Trade deficit occurs when the value of a country’s imports is greater than the value of its exports

a. True

b. False

Answer 1

National competitive advantage theory states that a nation’s competitiveness in an industry depends on the capacity of the industry to innovate and upgrade.
a. True

A nations productive capacity, the capacity to innovate creates its competitiveness.

Both early theories of absolute and comparative advantage held that efficiency gains would be the result of specialization in the production of a particular good.
a. True

The trade deficit occurs when the value of a country’s imports is greater than the value of its exports
a. True

if Imports>Exports--> Trade Deficit

if Exports>Imports--> Trade Surplus